Sanofi Session Staff asked 3 years ago

Is investment in debt mutual fund for short term goal is beneficial in current market scenario where bond yield is higher

1 Answers
Hansi Staff answered 3 years ago

Bond investments are subject to multiple risks including market risks. Market risk means that the market value of your bonds is lower than what you paid for it – which is what will happen if yields rise. If yields fall, your bonds will actually rise in value.
Having said that, if you are investing for a short-term goal, please ensure your debt mutual fund has a similar or shorter average tenure, or duration. And that it doesn’t take on undue credit risk.
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